Decentralized Customer-Controlled Credit Verification

Abstract

Systems and methods for decentralized distribution of verifiable information, such as financial information, without requiring resort to centralized information system at the time of a query or other request for information. A decentralized method includes the steps of creating a digital wallet, issuing/receiving an issued verifiable digital credential signed by a credential issuer acting as a trust anchor for a claim contained in the verifiable digital credential, storing the verifiable digital credential within the digital wallet, receiving a request for verified information, and providing the verifiable digital credential, including the claim, from the digital wallet. The verification of information may occur as a zero-knowledge proof such that a required standard is verified as satisfied without disclosing more information about a consumer or other user than is absolutely necessary.

Description

CROSS-REFERENCED APPLICATIONS[0001]This patent application claims priority to U.S. Provisional Patent Application No. 62 / 787,138, which was filed on Dec. 31, 2018.BACKGROUND OF THE INVENTION1. Field of the Invention[0002]The present invention relates to consumer reporting, and more particularly to systems and methods for providing decentralized customer-controlled credit verification.2. Background and Related Art[0003]Traditionally, a number of centralized consumer reporting agencies have been responsible for providing credit verification services as a part of the credit decision-making process. Would-be consumers / borrowers approach would-be lenders about obtaining a loan, credit line, or other type of credit, and the would-be lenders obtain information about the potential borrower. The lender then uses the borrower information to contact one of the several consumer reporting agencies to request information or credit verification sufficient to allow the lender to determine whether t...

AI Technical Summary

Benefits of technology

[0010]In some implementations, the claim regarding the consumer's creditworthiness includes a verified credit score. In some implementations, the claim regarding the consumer's creditworthiness includes a verification that the consumer's credit score exceeds a minimum value. In certain implementations, the claim regarding the consumer's creditworthiness includes a zero-knowledge proof that the consumer's credit score exceeds a minimum value. In further implementations, the claim regarding the consumer's creditworthiness includes a zero-knowledge proof that the consumer has a bank balance in excess of a minimum value. In some implementations, the claim regarding the consumer's creditworthiness includes a zero-knowledge proof that the consumer has an income in excess of a minimum value.

[0011]According to further implementation of the invention, a decentralized method for providing a verification of a consumer's creditworthiness that permits the consumer to verify creditworthiness without resort to a centralized credit bureau at a time of verification includes steps of receiving, at a centralized credit bureau computer that is connected to a global network and that includes a processor, a login request from a new consumer, creating a digital wallet for the new consumer using the processor, delivering the digital wallet to the consumer over a network connection, creating a consumer reporting agency (CRA) credential for the new consumer including a public-private key pair for a relationship between the CRA and the new consumer, registering a new identifier on a trust network for the new consumer, obtaining permission from the new consumer to share one or more claims sufficient to satisfy a lender request for a verification of the new consumer's creditworthiness, issuing and digitally signing a verifiable digital credential containing a claim regarding the consumer's creditworthiness, and delivering the claim regarding the consumer's creditworthiness to the digital wallet over the network connection such that the claim is available in the consumer's digital wallet for use on demand by the consumer.

[0012]In some implementations, the method includes steps of receiving permission from the new consumer over the global network to obtain information from a financial institution at which the new consumer has a financial account, and using the permission from the new consumer to access the financial institution and obtain information regarding the new consumer's financial account. In some implementations, the method includes using the information regarding the new consumer's financial account to generate the claim regarding the consumer's creditworthiness, wherein the claim regarding the consumer's creditworthiness includes a claim regarding income of the consumer. In some implementations, the method includes using the information regarding the new consumer's financial account to generate the claim regarding the consumer's creditworthiness, wherein the claim regarding the consumer's creditworthiness includes a claim regarding an account balance of the consumer.

[0013]In some implementations, the claim regarding the consumer's creditworthiness includes a zero-knowledge proof that the consumer's credit score exceeds a minimum value. In some implementations the claim regarding the consumer's creditworthiness includes a zero-knowledge proof that the consumer's income exceeds a minimum value. In some implementations, the claim regarding the consumer's creditworthiness includes a zero-knowledge proof that an account balance of the consumer exceeds a minimum value.

Problems solved by technology

Traditionally, the data stored by the consumer reporting agencies is opaque to the consumer, and the consumer has little ability to view, let alone control, the data maintained by the consumer reporting agencies.

While consumer reporting agencies are required by the Fair Credit Reporting Act to timely correct mistakes contained within their stores of consumer data, such mistakes can prevent consumers from obtaining credit in a timely fashion and on the best terms.

Additionally, the consumer has little to no control over the personal information stored by the consumer reporting agencies, and the information provided by the consumer reporting agencies in response to credit inquiries.

Data breaches have occurred at times, putting consumers' information and creditworthiness at risk.

When lenders obtain more personal information about consumers than is strictly necessary for the lending process, that information becomes subject to added risks, such as data breaches of systems other than the systems of the consumer reporting agencies.

In addition to these problems, the consumer information at any one consumer reporting agency may differ from the consumer information at other consumer reporting agencies.

This presents a problem, such as when a consumer takes the time to verify information at one agency only to have a lender obtain creditworthiness information from a different, unverified, agency.

A possible result of agency differences in data can be a surprise variation from expected credit application results, such as credit denial, increased loan interest rates, or other negative consequences to the lender or the consumer.

Accordingly, there are significant difficulties inherent in the current centralized or semi-centralized system for creditworthiness verification.

Lenders, however, are understandably wary of propositions that would decentralize maintenance of creditworthiness information.

Furthermore, a decentralized information system could result in delays in the decision making process if lenders are unable to obtain trusted information in a timely fashion.

Accordingly, there have been significant impediments to adoption of any kind of decentralized system.

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